Marret Resource Corp. Provides Update on its Plan of Arrangement and Closes Third Tranche of Financing

Marret Resource Corp. Provides Update on its Plan of Arrangement and Closes Third Tranche of Financing

TORONTO, Oct. 12, 2018 (GLOBE NEWSWIRE) -- Marret Resource Corp. (TSX:MAR) (“” or the “”) is pleased to provide an update on its previously announced plan of arrangement transaction (the “”) and announces that it has: (i) closed the third tranche (the “”) of its private placement (the “”) of subscription receipts (the “”), raising an additional C$12,418,146; (ii) received the requisite approval from holders of Subscription Receipts to amend the Subscription Receipt Agreement (as defined below) in the manner described below; and (iii) migrated its listing to the Aequitas NEO Exchange Inc. (the “”).

The Company obtained a final order from the Ontario Superior Court of Justice (Commercial List) approving the Arrangement on October 2, 2018. In order to facilitate the closing of the Third Tranche, the Company now expects the closing of the Arrangement to occur during the week of October 15, 2018.

Pursuant to the Arrangement, among other things:

Based on final elections received by the Company pursuant to the Arrangement, as a result of proration, it is expected that each shareholder making a Warrant Election will receive Warrants in respect of approximately 72.5% of its New Shares deposited pursuant to such Warrant Election and will retain the remainder of its New Shares, and each shareholder making a Cash Election will receive cash consideration of $0.53 per share in respect of 95% of its New Shares deposited pursuant to such Cash Election and will retain the remainder of its New Shares. As previously disclosed, the maximum number of Warrants issuable under the Arrangement is 20% of the New Shares at closing on a diluted basis (assuming exercise of the Warrants) and the maximum cash to be to be paid under the Arrangement has been prorated to ensure the Company will be in a position to meet the initial and continuous listing requirements of the NEO Exchange. Pursuant to the Arrangement, former holders of Shares will not be entitled to a fractional Warrant or New Share. Where the aggregate number of Warrants or New Shares to be issued to a former holder of Shares under the Arrangement would result in a fraction of Warrants or New Shares being issuable, the number of Warrants or New Shares to be received by such shareholder will be rounded down to the nearest whole Warrants or New Shares, as the case may be, without any payment for such fractional Warrants or New Shares. If the aggregate amount of cash which a shareholder is entitled to receive for all Shares transferred by such shareholder pursuant to the Arrangement would otherwise include a fraction of $0.01, then the aggregate cash to which such shareholder will be entitled to receive for all of its Shares transferred pursuant to the Arrangement will be rounded down to the nearest whole $0.01.

Further information about the Arrangement is available to shareholders under Marret’s profile on the System for Electronic Document Analysis and Retrieval (SEDAR) at .

The Company closed the Third Tranche comprised of 22,578,448 Subscription Receipts issued at a price of $0.55 per Subscription Receipt for additional gross proceeds of approximately C$12,418,146 Together with the proceeds raised under the first tranche and second tranche of the Private Placement, the Company has now raised approximately C$40.5 million pursuant to the Private Placement. The Third Tranche was led by GMP Securities L.P. (the “”).

Each Subscription Receipt will entitle the holder thereof to receive, without payment of additional consideration or further action, upon closing of the Arrangement, one Share which will be immediately and automatically exchanged for one New Share as a step in the Arrangement, which New Share will be freely tradeable upon the closing of the Arrangement. The Subscription Receipts issued under the Third Tranche will be subject to a statutory hold period ending February 12, 2019.

As with the first tranche and second tranche of the Private Placement, the gross proceeds received from the Third Tranche, less a portion of the Agent's commission and the expenses of the Agent, were deposited into escrow with Computershare Trust Company of Canada, as escrow agent for the Subscription Receipts (the “”), and will be released to the Company upon notice to the Subscription Receipt Agent that the escrow release conditions (the "") specified in the subscription receipt agreement (as supplemented, the “”), between the Company, the Agent, BCP and the Subscription Receipt Agent have been satisfied. As consideration for the services of the Agent rendered in connection with the Third Tranche, the Company has agreed to pay the Agent an aggregate cash fee equal to 6.0% of the gross proceeds of the Third Tranche, except in respect of sales to certain purchasers identified by BCP for which either a cash fee equal to 3.0% of the gross proceeds from such purchasers, or no fee, is payable.

The Release Conditions include, among other things, the completion, satisfaction or waiver of all conditions precedent to the Arrangement and to the acquisition of the loan portfolio; the entering into of the definitive agreement for the Arrangement and the acquisition agreement for the primarily U.S. based loan portfolio; the receipt of all shareholder, court and regulatory approvals required for the Arrangement; and the New Common Shares being conditionally approved for listing on the NEO Exchange.

In the event that the Release Conditions (as may be amended) are not satisfied by October 25, 2018, the full proceeds of the Private Placement, plus accrued interest, will be returned to the purchasers of the Subscription Receipts, and the Subscription Receipts will be automatically cancelled and of no further force or effect.

It is intended that, upon completion of the Arrangement, the net proceeds of the Private Placement will be utilized primarily to acquire a diversified U.S. loan portfolio assembled by BCP and for general corporate purposes.

Further to the Company’s press release of September 24, 2018, effective at the close of trading on October 9, 2018, the Company voluntarily de-listed from the Toronto Stock Exchange and was listed on the NEO Exchange at the open of markets on October 10, 2018, in a halted state. The Shares will remain halted on the NEO Exchange until completion of the Arrangement, and it is expected that trading will resume on or about October 23, 2018.

As previously announced, in anticipation of moving its listing to the NEO Exchange, the Company sought the written consents of holders of the Subscription Receipts to approve, by way of written consent, certain amendments to the Subscription Receipt Agreement to reflect the proposed change in listing as well as certain procedural and administrative amendments resulting from certain tax structuring matters. The Company is pleased to announce that the amendments to the Subscription Receipt Agreement were approved in writing by approximately 70.5% of the Company’s holders of Subscription Receipts. As a result, the Company has entered into an amended and restated arrangement agreement, an agency agreement amending agreement and a supplement to the subscription receipt agreement to give effect to these minor amendments.

Marret Resource Corp. is currently focused on natural resource lending. The Company’s business is primarily directed to investing in public and private debt securities of and making term loans (including bridge and mezzanine debt) to issuers in a broad range of natural resource sectors, including energy, base and precious metals and other commodities, and issuers involved in exploration and development, and may also include financing other resource-related businesses and investing in public and private equity and quasi-equity securities. The Company seeks to generate income mainly from its lending activities, while taking advantage of additional upside through equity participation in the companies which it finances.

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